A widely followed cryptocurrency analyst and trader is expressing bearish sentiment on Bitcoin (BTC) following a market correction that coincided with Binance and its former CEO, Changpeng Zhao, pleading guilty to US federal charges.
The analyst known under the pseudonym Capo tells his 764,900 followers on social media platform X that the “beginning of the end” is here.
According to Capo, an imminent “mass capitulation event” will precede the end of the cryptocurrency bear market.
In response to a follower asking if Bitcoin is heading towards $12,000, the pseudonymous analyst says the outlook is “still likely” and that a drop to a price last witnessed in October 2020 would mark the bottom.
Bitcoin is trading at $37,369 at the time of writing, up from its one-week low of $35,632.
As for altcoins, Capo says they could correct more drastically than Bitcoin if BTC falls to its $12,000 price target. According to Capo, some altcoins are already showing signs of reaching a market high.
“The sentiment right now is extremely optimistic…
This sentiment and price action does not correspond to the current macroeconomic state (forming a divergence) and most charts appear overextended and with decreasing volume. They are prolonging this race as much as possible, but the longer the artificial race is…”
Image generated: DALLE3
